CommerceWest Bank Reports Solid Profitability And Net Income Growth Year Over Year Of 141%

CommerceWest Bank (OTCBB: CWBK) announced today its financial results for the three and nine months ended September 30, 2010. The company reported earnings for the three months ended September 30, 2010 of $8,000 or $0.01 per basic common share and $0.01 per diluted common share, as compared to net income of $1.0 million or $0.27 per basic common share and $0.26 per diluted common share for the three months ended September 30, 2009, a decrease of 99%. Net income for the nine months ended September 30, 2010 was $510,000 or $0.12 per basic common share and $0.12 per diluted common share, as compared to a loss of $1.2 million or $(0.26) per basic common share and $(0.26) per diluted common share for the nine months ended September 30, 2009, an increase of 141%.

A fortress balance sheet, with a tier 1 leverage ratio of 12.24% and total risk based capital ratio of 20.08%

3.65% provision for loan losses as a percent of total loans on the CommerceWest Bank portfolio

28% decrease in non-performing assets from 12/31/09

Strong liquidity with a liquidity position to total assets ratio of 24%

No TARP funds

Total assets decreased $63.3 million as of September 30, 2010, a decrease of 17% as compared to the same period one year ago. Total loans decreased $70.4 million as of September 30, 2010, a decrease of 29% over the prior year. Total deposits decreased $55.1 million as of September 30, 2010, a decrease of 18% from September 30, 2009. Stockholders’ equity on September 30, 2010 was $43.8 million, an increase of 2% as compared to stockholders’ equity of $42.9 million on September 30, 2009.

Mr. Ivo Tjan, Chairman and CEO, said, “The Bank has aggressively de-levered the assets of Discovery Bank. The Bank successfully moved out over $50 million in high cost non-core relationship deposits. The Bank has also aggressively reduced non-performing and criticized assets. The net result has been the strengthening of the Bank’s tier 1 leverage ratio, which has increased 6% from the prior year to 12.24%, as well as strengthening the total risk based capital ratio, which increased 31% to 20.08%, without raising additional capital. We have substantial capital and liquidity to deploy and attract new business clients, which will be part of our strategy for the remainder of this year and 2011.”

Provision for loan losses for the three months ended September 30, 2010 was $690,000 compared to $575,000 for the three months ended September 30, 2009, an increase of 20%. Provision for loan losses for the nine months ended September 30, 2010 was $2,215,000 compared to $6,745,000 for the nine months ended September 30, 2009, a decrease of 67%.

The Bank’s allowance for loan losses as a percent of total loans was 3.65% for the CommerceWest Bank portfolio on September 30, 2010 as compared to 2.76% on September 30, 2009, an increase of 32%.

Non-interest expense for the three months ended September 30, 2010 was $2,532,000 compared to $2,804,000 for the same period last year, a decrease of 10%. This favorable trend in the third quarter is attributable to the Bank’s continued efforts to review and improve the operating efficiency of the Bank.

Capital ratios for the Bank remain above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of September 30, 2010, the leverage ratio, tier 1 capital ratio, and total risk-based capital ratio was 12.24%, 18.82% and 20.08%, respectively.

CommerceWest Bank is headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Offices in Orange County, Riverside County, Los Angeles County and San Diego County. We are a full service business bank and offer a wide range of commercial banking services, including, concierge services, remote deposit solution, full-service internet banking, lines of credit, term loans, commercial real estate lending, SBA lending, and full cash management.

Mission Statement: CommerceWest Bank will create a complete banking experience for each client, catering to businesses and their specific banking needs, while accommodating our clients and providing them high-quality, low stress and personally tailored banking and financial services.

Please visit www.cwbk.com to learn more about the bank. “BANK ON THE DIFFERENCE”

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties.Actual results may differ materially from stated expectations.Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes, financial policies of the United States government and general economic conditions.The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments.